Net Income Per Share

12 Months Ended

Jan. 31, 2025

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the fiscal period. Diluted net income per share is computed by giving effect to all potential weighted average dilutive common stock, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income per share by application of the treasury stock method.

A reconciliation of the denominator used in the calculation of basic and diluted net income per share is as follows (in millions):


4	Fiscal Year Ended January 31,
		2025		2024		2023
Numerator:
Net income		$	6,197	$	4,136	$	208
Denominator:
Weighted-average shares outstanding for basic net income per share		962		974		992
Effect of dilutive securities:
Employee stock awards		12		10		5


Weighted-average shares outstanding for diluted net income per share		974		984		997

The weighted-average number of shares outstanding used in the computation of diluted net income per share does not include the effect of the following potentially outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net income per share because the effect would have been anti-dilutive (in millions):


	Fiscal Year Ended January 31,
		2025	2024	2023
Employee stock awards		7	13	39